Premier Peter Gutwein is hopeful Tasmania will reopen to NSW residents from early November but will continue to monitor that state's coronavirus status for the rest of the week.
Mr Gutwein said the COVID-19 situation in NSW was pleasing, but added he needed more time before easing restrictions from 2 November.
"It's pleasing that state, whilst continuing to have new cases, they are only a limited handful of cases generally on a day-by-day basis," he told reporters on Monday.
"If the situation worsens, we won't hesitate to keep our borders restricted with that state and keep our border arrangements in place."
Mr Gutwein said he would be providing an update by Friday or at the latest, Monday.
Public Health Director Mark Veitch said NSW would need to experience "continuing low numbers of unexplained cases".
"Over the last couple of weeks, they've still been seeing cases but they've been linked to an elaborate network of clustered cases that have been occurring particularly in southwest Sydney over the last couple of months," he said.
"So there's evidence from that, that they are not quite out of the woods yet but certainly a couple of weeks with diminishing number of cases ....would give us strong evidence that it will be safe to receive people here without either quarantine or hotel quarantine."
Increasing the state's household gathering limits from 20 people would not be changing "in a hurry", but a framework is being developed for larger sports and cultural events over the coming months.
Tasmania is on track to reopen to low-risk states of South Australia, Western Australia, Queensland, the Northern Territory and the Australian Capital Territory from 26 October.
People entering the island state from these areas will need to register their travel via an online system due to open on Friday, and three days prior to arriving.
But it will remain closed to Victoria until at least 1 December.
After the recent travel bubble with New Zealand was announced, .
People in Australia must stay at least 1.5 metres away from others. Check your jurisdiction's restrictions on gathering limits. If you are experiencing cold or flu symptoms, stay home and arrange a test by calling your doctor or contact the Coronavirus Health Information Hotline on 1800 020 080.
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